Personal Loan Rates 2018 1154 views
Personal loans are unsecured loans that keep your life on track when you have a shortage of money. There are many factors on which a personal loan is offered like the age, monthly income, monthly expenses, credit history, the category of your employer, savings, etc. One of the important factors out of these is Credit Score. A credit or cibil score is the credit history that is the past record of your installments. In the past, if you have had a loan and your payments got delayed due to some reason, your credit score will be considered as bad credit. In such cases, your personal loan application is going to have a direct impact. Questions like whether or not you can take a personal loan are bound to surface and if yes, then how to get a personal loan with bad credit?
However, if you think that your bad credit is forever, you are wrong!
It’s true that a bad credit might not let you get a personal loan so easily. But, the present configuration of loan market has re-adjusted themselves according to the bad credit. People from all strata are now able to get personal loans as per their desires even if they have a bad credit history. Generally, the loan applicants with a credit score between 350-850 can apply for a personal loan and the credit score below 600 is considered a bad credit.
Here are some of the important things you must know to get personal loans with bad credit without any hassle.
- Buy a credit information report before applying for a personal loan to protect your loan application from rejection. Since, once your application is rejected, you might have to wait for a minimum 6 months to apply for a personal loan again.
- A person with bad credit can not get a personal loan is nothing more than a myth. The truth is, a bad credit personal loans have lesser choices for consumers because the loan process for personal loans with bad credit is a little different from a personal loan with good credit.
- Lenders who provide personal loan with bad credit are lesser in numbers as compared to the good credit loan providers. Still, there are many banks and NBFCs that facilitate for unsecured personal loans with bad credit. So, look for options with bad credit personal loan packages and avoid facing multiple rejections.
- Start improving your credit history by making regular payments, close any ongoing loans, wait for few months and then apply. Doing so will not only enhance your credit score, but it will also let you get a desirable loan package.
- For those who have enough home equity, you can get a low-interest, tax-deductible line of credit on your personal loan regardless of your bad credit.
- Even though a credit score is fundamental in loan borrowing, it is not the only deciding factor. So, if you are working in a reputed firm, earning a handsome monthly salary, have good savings, and equity then you will have a great chance to get higher loan amount on your personal loan.
- Bad credit score holders can take both secured and unsecured personal loan. However, lenders find it easier to trust the applicants who chose secured loan because security is presented and hence the chance of getting higher loan amount is high as well. On the other hand, the unsecured loan applicants will have to settle for the lower loan amount.
- The interest rates will be higher on bad credit score applications. Still, you have the right to compare personal loan quotes and chose the best suited personal loan offer.
- If you have no running loan and do not have any credit card, your loan application will be stronger and hence the possibility of getting loan approval if more even with a bad credit.
- Another important thing that you should do is the documentation properly. The lender will keep a check on your personal details and the documents that you will provide at the time of the loan. Hence, once the paperwork is good, half the battle is won.
Once you have decided that you need a personal loan, you can check your eligibility of personal loan with the help of the personal loan eligibility calculator. The calculator works on the basis of your income, age, savings and other profile details and will show the list of the available options. After that, you can compare the best offers and chose the lowest interest rate offered. So, there is no need to be disheartened if you have a bad credit history and want to take a personal loan. Now if someone would ask you how to get a personal loan with bad credit you can help them out as well.